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Hasmukh Adhia busts seven misconceptions about Goods and Services Tax (GST)

Jul 3, 2017 10:32 IST

Hasmukh Adhia busts seven misconceptions about GST= One day after the historic implementation of the Goods and Services Tax (GST) across the country, the government on 2 July 2017 tried its best to dispel the misconception/myth related to the new taxation system. GST was launched across the country on 1 July 2017.

The Revenue Secretary, Government of India, Dr Hasmukh Adhia through a series of tweets from his Twitter handle @adhia03 has busted on 2 July 2017 certain common misconceptions/ myths about GST.

Find the myths and reality about the GST:

Myth

Reality

Myth 1: Do I need to generate all invoices on computer/ internet only.

Reality 1: Invoices can be generated manually also.

Myth 2: I need internet all the time to do business under GST.

 

Reality 2: Internet would be needed only while filing the monthly return of GST.

 

Myth 3: I have provisional ID but waiting for final ID to do business.

 

Reality 3: Provisional ID will be your final GSTIN number. So start business.

 

Myth 4: My item of trade was earlier exempt so I will need new registration before starting business now.

Reality 4: You can continue doing business and get registered within 30 days.

 

Myth 5: There are 3 returns per month to be filed. 

Reality 5: There is only 1 return with 3 parts, out of which first part is to be filed by dealer and two other parts would be auto populated by computer.

Myth 6: Even small dealers will have to file invoice wise details in the return.

Reality 6: Those in retail business (B2C) need to file only summary of total sales.

Myth 7: New GST rate is higher compared to earlier VAT.

Reality 7: It appears higher because excise duty and other taxes which were invisible earlier are now subsumed in GST and so visible now.

Besides, Hasmukh Adhia also said that GST appears higher as compared to VAT because excise duty and other taxes which were invisible earlier are now subsumed in GST, as a result of which it is visible now.

Excel based template to facilitate taxpayers

In addition to this, Goods and Services Network (GSTN) has unveiled a simple Excel based template that will facilitate the taxpayers in preparing and filing their monthly returns with maximum ease and minimal cost.

The Excel template is a part of GST Council’s approach to make tax compliance highly easy and convenient for taxpayers and also reduce the time of compliance to improve ease of doing business. This Excel workbook template can be freely downloaded from the GST Common portal (www.gst.gov.in) and can be used by taxpayers to collate all invoice related data on a regular basis.

The Excel format can be used by businesses to start maintaining their data. The taxpayer can prepare the details of his outward supply on weekly or any other suitable regular interval which can then be uploaded on GST portal on or before the 10th of subsequent month. The GSTR1 Excel template workbook can be used to prepare the data for GSTR 1 return without connecting to the internet in offline mode. This also benefits taxpayers in remote areas where Internet connectivity might not be good.

The template comprises of eight worksheets. Summary of key values in each worksheet has been provided at the top to help taxpayers easily reconcile the data entered in the worksheets with that recorded in his accounting system/books to accurately prepare the return. Based on data entered in the Excel sheet, an offline tool will prepare a file which will have to be uploaded by the taxpayer on GST Portal to create GSTR-1. Only while uploading the file on the GST portal, Internet connectivity will be required.

Is this article important for exams ? Yes3 People Agreed

DISCLAIMER: JPL and its affiliates shall have no liability for any views, thoughts and comments expressed on this article.

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